Report: Detroit Big Three to Be Hit Hardest by Auto Import Tariffs

A report from auto data firm JATO Dynamics suggests that the Detroit Big Three have the most to risk from the 25% tariff on foreign-made cars imposed by the U.S., according to Yahoo Finance.

General Motors, Ford, and Stellantis sold a combined 1.85 million imported vehicles in the US in 2024, sourced from Mexico, Canada, and China. This comprised 12.6% of their global total sales.

In contrast, the three biggest Japanese automakers—Toyota, Honda, and Nissan—sold 1.53 million imported vehicles in the U.S. market, making up just 8.5% of their global sales. Germany’s top three automakers, Volkswagen, BMW, and Mercedes-Benz, saw just 6.9% of their global sales come from the U.S.

There are a couple of reasons for this, the first of which being the Big Three’s reliance on the U.S. market in terms of sales—especially Ford and GM. While these companies are predominantly focused on the U.S. market, Japan and Germany’s top three brands sell in many other markets besides their domestic ones, and will feel less of a blowback from import restrictions in certain markets.

Additionally, many foreign automakers already build domestically in the U.S., such as Mercedes and BMW, which produce a significant number of vehicles at respective plants in Alabama and South Carolina.

Despite serving several markets, these foreign automakers will want to remain in the U.S. market due to its high value, meaning they will have to navigate tariffs as they come.

“The US is the world’s second-largest vehicle market, and it will now be more difficult than ever for the vast majority of non-Chinese automakers around the world to trade,” Felipe Munoz, JATO analyst, stated in the report. “The US is a market that they can’t leave.”